GLOSSARY D-F

Dangerous Goods - DG
Commodities classified by IATA according to its nature and characteristic in terms of the effect of its danger to carrier's flying safety.

Delivered At Frontier - DAF
This term can be used when the goods are transported by rail and road. The seller pays for transportation to the named place of delivery at the frontier. The buyer arranges for customs clearance and pays for transportation from the frontier to his factory. The passing of risk occurs at the frontier.

Delivered Duty Paid - DDP
Delivered Duty Paid (named destination place).  This term means that the seller pays for all transportation costs and bears all risk until the goods have been delivered and pays the duty. Also used interchangeably with the term "Free Domicile". The most comprehensive term for the buyer. In most of the importing countries, taxes such as (but not limited to) VAT/GST and excises should not be considered prepaid being handled as a "refundable" tax. Therefore VAT/GST and excises usually are not representing a direct cost for the importer since they will be recovered against the sales on the local (domestic) market.

Delivered Duty Unpaid - DDU
Delivered Duty Unpaid (named destination place).  This term means that the seller delivers the goods to the buyer to the named place of destination in the contract of sale. The goods are not cleared for import or unloaded from any form of transport at the place of destination. The buyer is responsible for the costs and risks for the unloading, duty and any subsequent delivery beyond the place of destination. However, if the buyer wishes the seller to bear cost and risks associated with the import clearance, duty, unloading and subsequent delivery beyond the place of destination, then this all needs to be explicitly agreed upon in the contract of sale.

Delivered Ex Quay - DEQ (named port)
This is similar to DES, but the passing of risk does not occur until the goods have been unloaded at the port of destination.

Delivered Ex Ship - DES (named port)
Where goods are delivered ex ship, the passing of risk does not occur until the ship has arrived at the named port of destination and the goods made available for unloading to the buyer. The seller pays the same freight and insurance costs as he would under a CIF arrangement. Unlike CFR and CIF terms, the seller has agreed to bear not just cost, but also Risk and Title up to the arrival of the vessel at the named port. Costs for unloading the goods and any duties, taxes, etc… are for the Buyer. A commonly used term in shipping bulk commodities, such as coal, grain, dry chemicals and where the seller either owns or has chartered their own vessel.

Delivery Instructions
Provides specific information to the inland carrier concerning the arrangement made by the forwarder to deliver the merchandise.

Detention
Detention is what the shipping line charges for overtime use of containers.  They reflect a charge to the merchant for detaining the carrier’s equipment outside the port, terminal or depot, beyond the line’s stipulated free period. The free period may be for example, seven days after leaving port, terminal or depot. After that a per day overtime detention charge will apply which the lines say is to cover their costs of not having that container available for use.

Demurrage
Excess time taken for loading or unloading a vessel, thus causing delay of scheduled departure. Demurrage refers only to situations in which the charter or shipper, rather than the vessel's operator, is at fault.

Dimensional Weight
Also called measurement weight. This is the size of consignment calculated by total square feet by 6000. Carrier charge for freight based on the dimensional weight or actual gross weight whichever is higher.

Direct Ship
Ship without consolidation and under one MAWB ie non-consolidation.

Drawback
Drawback is a rebate by a government, in whole or in part, of customs duties assessed on imported merchandise that is subsequently exported. Drawback regulations and procedures vary among countries.

Duty
A tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the goods, some other factors such as weight or quantity (specific duties), or a combination of value and other factors (compound duties).

Dimensional Weight/Volumetric Weight
Dimensional weight is also known as DIM Weight, Volumetric Weight, Cubed Weight, etc. Freight carriers utilize the greater of the actual weight or dimensional weight to calculate shipping charges. Dimensional Weight is calculated as (Length x Width x Height) / (Dimensional Factor). Measurements can be made all in inches or all in centimeters, but the appropriate shipping factor must also be used.  By charging only by weight, lightweight, low density packages become unprofitable for freight carriers due to the amount of space they take up in the truck/aircraft/ship in proportion to their actual weight. The concept of Dimensional Weight has been adopted by the transportation industry worldwide as a uniform means of establishing a minimum charge for the cubic space a package occupies.

Direct Shipment
Freight that is not being transshipped, just coming straight from the port of loading to the port of discharge without being discharged from the vessel or aircraft.

Drawback
A Drawback is the return of duty and/or taxes paid on imported goods which are subsequently exported.

Duty Concession
Means by which duty that would otherwise be payable may be reduced or waived. Part II of the New Zealand Customs Tariff sets out the sixteen categories under which duty concessions are granted.

EDI
EDI, Electronic Data Interchange for Administration, Commerce, and Transportation, is an international syntax used in the interchange of electronic data. Customs uses EDI to interchange data with the importing trade community.

ETA
Estimated Time of Arrival.

ETD
Estimated Time of Departure.

Ex Works (...named place) (EXW)
A term of sale in which for the quoted price, the seller merely makes the goods avaliable to the buyer at the seller's "named place" of business. This trade term places the greatest responsibility on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included.

FCL or CY
Full Container Load, also known as CY. CY is the abbreviation of Container Yard. When the term CY to CY, it means full container load all the way from origin to destination.

Federal Maritime Commission
The FMC is an independent agencys which regulates oceanborne transportation in the foreign commerce and in the domestic offshore trade of the United States.

Flat Rack Containers
Especially for heavy loads and over-dimensional cargo. Containers do not have sides or a top. This allows easy fork-lift and crane access.

Forty-Foot Equivalent Unit (FEU)
FEU is a measure of a ship's cargo-carrying capacity. One FEU measures forty feet by eight feet by eight feet -- the dimensions of a standard forty-foot container. An FEU equals two TEUs.

Free Alongside Ship
Free Alongside Ship, FAS, at a named port of export. Under FAS, the seller quotes a price for the goods that includes charges for delivery of the goods alongside a vessel at the port of departure. The seller handles the cost of unloading and wharfage; loading, ocean transportation, and insurance are left to the buyer. FAS is also a method of export and import valuation.

Free Carrier (FCA)
Free Carrier, FCA, to a named place. This term replaces the former "FOB named inland port" to designate the seller's responsibility for the cost of loading goods at the named shipping point. It may be used for multimodal transport, container stations, and any mode of transport, including air.

Free On Board (FOB)
Common price term used in international trade meaning seller's responsible for the cost of goods is to the point of loading it to the vessel deck or aircraft loading deck. The risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods have been so delivered. FOB normally comes with port of loading either airport or sea port.

Freight Carriage ... and Insurance paid to
This term is the same as "Freight/Carriage Paid to ..." but with the addition that the seller has to procure transport insurance against the risk of loss of damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.

Freight Carriage ... paid to
Like C & F, "Freight/Carriage paid to ..." means that the seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss of or damage to the goods, as well as of any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship's rail. The term can be used for all modes of transport including multi-modal operations and container or "roll on-roll off" traffic by trailer and ferries. When the seller has to furnish a bill of lading, waybill or carrier's receipt, he duly fulfills this obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination. (Also see incoterms)

Freight Forwarder
An independent business which handles export shipments for compensation. At the request of the shipper, the forwarder makes the actual arrangements and provides the necessary services for expediting the shipment to its overseas destination. The forwarder takes care of all documentation needed to move the shipment from origin to destination, making up and assembling the necessary documentation for submission to the bank in the exporter's name. The forwarder arranges for cargo insurance, makes the necessary overseas communications, and advises the shipper on overseas requirements of marking and labeling.

Freight for All Kinds (FAK)
FAK is a shipping classification. Goods classified FAK are usually charged higher rates than those marked with a specific classification and are frequently in a container which includes various classes of cargo.